The village of Yamakoshi in the Niigata mountains in Japan has found a new way to fund its development through the use of non-fungible tokens (NFT). Initiated in 2021, the Neo-Yamakoshi Village project has attracted 1,700 “digital citizens” who purchased Nishikigoi NFTs, raising over 3,000.
The digital assets are the identifiers and governance tokens that allow people to take part in decision-making based on the village’s distributed autonomous organization (DAO) procedures to give voters a say in the community’s outcomes.
Proceeds from the NFT sales have been set aside for various community projects, beginning with sports activities for school children. The Neo-Yamakoshi Village project faces challenges: older residents need help with technology, and communication barriers exist due to its international scope.
Low voter turnout in DAO elections highlights initial hurdles in integrating digital governance frameworks into traditional community settings. The Yamakoshi project received support from Japan’s government to enlarge the effect area, which can be a model for other municipalities in Japan,
The global NFT markets have seen a downturn trading volumes have dropped significantly, with the second quarter of 2024 projected to close down 45% compared to previous periods. Observers have pointed out that Japan particularly has a tradition for collecting tokens, which means the business case for NFTs can remain robust.
Also read: Mark Cuban Sells His NFTs, Pudgey Penguin Goes for $30,000
